Budget cost squeeze comes under more fire

A public policy academic says the Government has made a pragmatic decision to make big spending cuts early in its term.

Alan Porritt: AAP

The Northern Territory Government has come under fire over some of the tough cost-cutting measures included in its mini-budget.

The Country Liberals released their mini-budget yesterday, which included hundreds of public service job losses, increased charges for power, water and sewerage, public transport and vehicle registrations.

Larrakia Nation says the decision to cease funding to night patrol services will increase anti-social behaviour in public places and drain police resources.

The patrols, which take homeless and drunk people to sobering-up shelters, will be phased out in the next year.

Larrakia Nation's chief executive Ilana Eldridge is urging the Government to reconsider the decision.

"It was cut once before," she said.

"It used to be run by mission Australia.

"It was cut, the situation became chronic and dire, and I think the main impetus to recreate and restart a night patrol service came largely from the Northern Territory Police.

"Public safety and anti-social behaviour, to use a government phrase, has been one of the promises the Chief Minister and the CLP used in their election promises," she said.

"I think that these programs in particular have a huge impact in reducing the amount of homelessness on the streets of Darwin."

North Australian Aboriginal Justice Agency spokesman Jonathan Hunyor says the decision to scrap the SMART court, which focused on rehabilitation, doesn't make sense.

"It is going to cost a lot more because locking people up is massively expensive," he said.

He says the Government still hasn't released costings for its plan to introduce mandatory alcohol rehabilitation.

Opposition Leader Delia Lawrie used her mini-budget reply speech to accuse the Country Liberals of betraying Territorians.

Ms Lawrie told Parliament that the cuts to public sector jobs and increased fees for Government services were "unnecessary", "mean" and "out of touch".

"You are out of touch with the reality of Territorians and have delivered a mean-spirited budget," she said.

"The slash and burn nature of this mini-budget is unnecessary."

She told parliament the debt levels are serviceable and the real reason for the mini-budget is to meet the Country Liberals' election promises.

"The CLP are pretending that all the price hikes, the job cuts, the health and education cuts are about debt," she said.

"Rubbish.

"They are about getting Territorians to pay for the CLP's unfunded promises."

A public policy academic says the Government has made a pragmatic decision to make big spending cuts early in its term.

Former Labor MLA and Charles Darwin University lecturer Ken Parish says the Government is hoping the cuts will be largely forgotten by the next election.

"The pain of having suffered a large, one-off increase in power and water charges, and a range of other taxes and charges will be a distant memory," he said.

"People will be prosperous and they'll be announcing good news policies running into the next election.

"That is no doubt their intention.

"It remains to see how well it works."

He says says while Government spending cuts may be necessary, there is a danger they could damage the Territory economy.

"It many well be the case that if the Government slashed too far, too fast, they will push the Territory's economy back into, if not a recession then certainly a period of very flat growth," he said.

"That would be something that I think would be concerning them, and concerning all of us."

Meanwhile, Treasurer Robyn Lambley has admitted that $300,000 allocated to the Alice Springs Golf Club in the mini-budget could have been spent "more wisely".

Mrs Lambley says she is honouring an election commitment to help the financially troubled sporting club.

"If you can get the golf club permanently out of the pickle they find themselves in regularly, it is money well spent," she said.

"But I guess you could argue that it could be spent more wisely in other ways."